Financial Institutions Play Catchup, Bitcoin and Cryptocurrency Lead

The growing popularity of Bitcoin and cryptocurrencies seems to put pressure on mainstream financial and payment institutions to up their game.

This is evident as these financial institutions (banks and cash service providers) are gradually unveiling systems, partnerships and admitting to the digital currency potential. To further aggravate an impending financial revolution, the launch of Facebook’s Libra cryptocurrency has set many in the financial space on their toes.

This publication highlights recent policies, products and partnerships to back this deduction.

MoneyGram Partners Ripple

Earlier this week, BTC.ng reported on the official announcement by global money remittance company – MoneyGram, unveiling its strategic partnership with Ripple (XRP cryptocurrency’s parent company).

The partnership according to both parties will focus on cross-border payments, as MoneyGram seeks to utilize Ripple’s XRP token and xRapid product to cut cost and ensure efficient international transfers.

This need for better and cheaper cross-border remittance models is one advantage of crypto/digital currencies over fiat.

Reports by global news media – Reuters say EU Banks could have an instantaneous payments system by the year 2020.

Although the real-time payments system has been in force since 2017, only a few banks in the region had implemented the initiative. Now with Facebook’s imminent launch of Libra stablecoin, a major competition will be born; one which these banks fear.

DG of European Payments Council (EPC) – Etienne Goosse states that – regardless of the success of Facebook’s Libra cryptocurrency, banks will need to evolve fasteras competition from technology (Fintech) firms are rife. According to him, these firms are dishing significant benefits over the much recycled banking system.

In his words:

They come with a global solution and global brand offering many things that consumers seem to find wonderful…so we have no time.

These comments highlight Goose’s affirmation of an impending struggle for customer base and market share. The report notes that though the instant payment option will get a wide spread across Europe in 2020, the banks will be unable to completely ward off competition as these fintech and crypto innovations offer users options to make easy mobile transactions by merely downloading an app.

Considering the Facebook’s role and should the Libra cryptocurerency project go ahead, the utility of chatting and social platforms will prove a worthy adoption point for all users.

SWIFT Launches Global Payment Initiative

In response to the growing demands and needs of customers, SWIFT – a payments servicing company, has launched its GPI (Global Payments Initiative) to improve customer-bank experience in international payments.

The GPI aims to curb the current hassles in international payments; such as a lack of unifed policies as regards payments, cost and shortages with regards to amount sent and final payment delivered, delayed dates of completion and other issues of the current fiat system.

SWIFT looks to offer banks a product to ensure quicker, transparent and secure payments all around the world.

This current need and new features for fiat, are at this time basic inherent characteristics of cryptocurrencies. Cryptocurrencies have offer instant, cheaper and more in less than 10 years reign from the native Bitcoin protocol and with room for more developments in the space, the potential looks unstoppable.

Read more about SWIFT here: www.Swift.com

Other Commentaries

Many have argued that this struggle for domination by fiat institutions seems to stifle innovation ad progress; as they look to maintain their financial share of the market.

Do you see crypto or digital currencies overhauling the financial system? Or would partnerships between Crypto, fintech and traditional financial institutions be a better approach?